Capitalization, Strict Governance, Modest Risk Lending, Revised Market Focus to Mark Path to Turnaround

After three years of challenges, a transformation of our Bank that has been underway since January is netting positive results for us in in asset recovery, credit risk procedures and strategic plans including capitalization. The Bank that emerges will be “leaner, faster and better” in every way from shareholder value to customers and employee satisfaction.

We are examining and assessing the policies and procedures of this bank from one end of the spectrum to the other. We are leaving no stone unturned. This assessment is forming the basis of an active transformation that includes a reduced appetite for risk and an increased focus on customer service enhancement.

We can no longer be all things to all people. For more than two decades Bank of The Bahamas was the bank that Bahamian business turned to. We can take pride in having backed a number of businesses that now play an important role in our economy but in order for BOB to achieve financial stability and sustainability, we must look at ourselves differently in the future as a bank that will be around for a very long time, financially sound and successful.

Along with streamlining our market focus, we will shore up capitalization to boost liquid reserves and enact strict new corporate governance policies and procedures that include a fresh model for credit risk and a new strategic approach to markets we serve, including an expanding role in assisting with government business and payment and benefits processing.

A transformation team is working across every department of this bank. Collections have been stepped up with some $3.5 million in recovered assets in hand or under contract. Other loans are being renegotiated. Loan losses from non-performing loans continue to trend down. Training and processes refinement are both underway as we move to create speedier customer service and a better customer experience.

Everything we do is aimed at being leaner, faster, better with long-term value and sustainability. This means we need to alleviate liquidity concerns and continue to offload illiquid assets, increase government and private deposits. That will involve some restructuring and that could include some natural attrition. There will be emphasis on ownership, accountability and profitability. We will continue to bolster our capital position by accelerating the resolution of impaired assets, embarking on a safe growth path and enhancing our organizational health. Ultimately, we will return to our core vision “To Be the Best and Most Respected Bahamian financial enterprise.

Our ability to consistently provide an exemplary level of service to our internal and external customers is also a strong area of focus and commitment. Going forward, these themes will underpin our activities as we build and maintain winning relationships.

We have never wavered from our commitment to the communities we serve. As we lay the framework for the Bahamian Bank of Solutions, we will be laser-focused on improving our financial performance and rigorously holding ourselves accountable for delivering results as quickly as possible. Our goal is to provide the best in service while achieving satisfactory shareholder returns, with higher stability levels and greater minority shareholder participation.